Allianz Q2 Operating Profit Soars to Record €4.4 Billion on Strong P&C Growth
In Q2 2025, Allianz broke its own record. The company reported a strong operating profit of €4.4 billion in Q2 2025. That’s not just good, it’s the highest quarterly profit in its history. The main reason? Strong performance in its Property and Casualty (P&C) business.
As one of the world’s largest insurers, Allianz is showing us what strong strategy and smart risk management can do. Even with global economic challenges, it’s staying ahead.
Let’s discuss the numbers, what’s driving this success, and why it matters for investors, for the insurance industry, and for all of us watching the market. Let’s also explore how Allianz is making headlines and setting new goals for the future.
Q2 2025 Financial Highlights
Allianz recorded an all-time high operating profit of €4.4 billion in Q2 2025. This shows a 12.2% increase from the same period last year. The result covers 28% of the €16 billion full-year target.
Business volume rose to €44.5 billion, showing 8% year-on-year growth. Core net income reached €3.0 billion, up 17.3%. Without a one-time €300 million gain from the UniCredit JV sale, the increase remained 7.1%.
In the first half of 2025, Allianz achieved €8.6 billion in operating profit. This marks its strongest half-year ever, with a 9.3% annual increase. It now covers 54% of the yearly goal.
Property & Casualty: Driving Force
The P&C unit stood out. Its operating profit for Q2 jumped 20% to €2.3 billion. The combined ratio (a key profit indicator in insurance) improved to 91.2% from 93.5%, helped by a lower loss ratio (67.4%) and improved expense ratio (23.9%).
For the first half, P&C’s operating profit rose 12%, reaching €4.5 billion. Its combined ratio also improved to 91.5%. Allianz credits stricter underwriting discipline, fewer natural catastrophe losses, and better expense control for these gains.
Business volume in P&C saw solid internal growth. Q2 volume rose 8.7%, with commercial lines up 10% and retail lines up 7%.
Life & Health and Asset Management
In Q2 2025, Life & Health premiums reached €19.5 billion, a 4% rise. The new business margin stayed strong at 5.7%. The value of the new business grew to €1.1 billion.
Operating profit in this segment was stable at €1.4 billion, showing a slight 1.8% increase from last year. Asset Management showed solid growth. Revenues rose 6-7% to about €2.0 billion. Operating profit increased by 5%, reaching €779 million.
Net inflows were strong €14 billion in Q2 and €42 billion in the first half. Third-party assets under management stood at €1.84 trillion, slightly down due to currency changes.
Strategic Moves & Capital Strength
Allianz is staying sharp on strategy and discipline. It has completed €1 billion of a €2 billion share buyback program by mid‑year.
Its Solvency II ratio remains rock‑solid at 209%, a sign of strong financial backing. Its annualized core return on equity (RoE) rose to 18.5%, or 17.9% when removing one‑offs, well above full-year 2024’s 16.9%.
Market Reaction & Investor Outlook
Investors are reacting positively. Core earnings per share (EPS) rose 11.3%, or 7.9% excluding one‑off impacts.
Analysts note that Allianz’s disciplined growth, high RoE, and strong capital position make it a compelling long-term play even though its price-to-book ratio remains below its five-year average.
Allianz Outlook & Industry Significance
Allianz reaffirms its guidance of €16 billion ± €1 billion for full-year operating profit. We see a company that leverages its diversified portfolio, strong P&C, stable L&H, and resilient Asset Management to manage risk and grow under market uncertainty.
Its gains set a high bar not just for peers like Zurich, but also for the wider insurance industry, reinforcing how underwriting discipline, productivity gains, and capital strength can drive real performance.
Final Thoughts
Allianz had a powerful second quarter. It posted its highest-ever operating profit of €4.4 billion. This success came mainly from strong results in its Property & Casualty business. The company also maintained solid performance in Life & Health and Asset Management.
What really stands out is Allianz’s smart strategy. It’s managing costs well, growing across business lines, and keeping its financial base strong. Even in a tough global market, Allianz is proving that focus and discipline pay off.
As we move through 2025, Allianz looks ready to meet its full-year goals. For investors and the insurance world, this sends a clear message: Allianz is leading with strength, stability, and smart moves.
Frequently Asked Questions (FAQs)
These are insurance or investment products that help Allianz use less capital while still giving good returns. They follow rules that reduce financial risk and meet regulations.
As of 2025, Allianz has a total equity (net worth) of about €75 billion. This value shows what the company owns after paying off all its debts.
In the second quarter of 2025, Allianz recorded a business volume of €44.5 billion. This came from insurance premiums, investment services, and other financial operations.
Disclaimer:
This is for information only, not financial advice. Always do your research.